CategoriesLong Term Rentals

Setting the Tone For A Tenancy Part 2

Setting The Tone For A Tenancy

We prefaced last week that our actions from the start of contact with a prospective tenant, it can set a tone for the tenancy. In this blog we are going to focus on the pre-tenancy activities and how they can affect how successful a residency is for landlord and tenant.

It’s Sales 101 to always be pleasant and happy when someone calls that wants to rent your place.  After the prospect has decided that they would like a showing, your instinct it likely to tell them you can show it now and grab your keys. After all, you don’t want to miss out on renting it right?   people’s instinct is to jump and grab your keys.

You have subtly sent a clue that your schedule and time isn’t too important to you.  You will jump when the right keys are turned (so to speak). This is not the precedent you want to set.  You want to make sure the tenant knows that your time is of value to you and that you schedule your time carefully. Doing so will reinforce to the tenant that you have other obligations. It also avoids setting the false expectations that you will always jump to assist them.

When scheduling the showing try to do it at least 24 hours in advance (unless you have another showing already scheduled that you can piggyback). If your time is limited don’t be afraid to set an open house strategy. You can tell the prospect you are showing the property at 9am & 10am on Saturday and they are welcome to join you then.  The premise being that if the prospect is motivated enough, they will be there.

When you are at the property for the showing, it is important to remember that your time is money.  If the person doesn’t call within 5 minutes of the showing start time to say they are lost or had an emergency, don’t wait around.  Remind yourself that you have a schedule and other tasks to handle.  It is your choice if you choose to call the tenant about the missed appointment while at the property or later.   If you call while there do not allow them to monopolize your time more.  Offer to reschedule but make sure the next appointment piggy backs off an existing one.  (Just in case they don’t show again.)

If a tenant isn’t courteous of your time before they move-in, they aren’t going to value your time after.  If they don’t value your time they don’t respect you.  If they don’t respect you, they aren’t going to be inclined to pay you on time per your rules.

There is a difference between being flexible and a doormat.  If you become a doormat for the pre-tenancy phase you will notice rent due dates are fluid, rules are nice when they work for them,and your words aren’t enforceable. Your communication and actions should establish the idea that you are the one who will control the relationship. If they seize control in the pre-tenancy days you will never get it back and you will always be their second fiddle until you “man” up and kick them out.

In the next blog we’ll take a look at what happens after the prospect has seen the property.  We’ll address the subtle things you might be doing during the application and leasing process that further establishes a tone of tenant dominance.

Corina Eufinger

Owner Brio Properties & CRC Investments

CategoriesLong Term Rentals

Setting The Tone For A Tenancy

Two years ago I had a procedure altering epiphany that drastically changed how I ran my properties and those I manage.  It all started when I met a fellow investor at a networking event. After getting to know him for a few months, our conversations became more in depth and…well….useful. They transitioned from weather, etc to nitty gritty real estate.

I was expressing how I was frustrated with some of the newer tenants being demanding and flighty at the same time. I went on to explain who Iit was getting hard to get rent on time, tenants would scheduled repairs but then changed their minds one hour before appointment, and they only followed the rules that were convenient for them.  Immediately he began asking questions.

He asked me if the showings for these particular tenants were scheduled in advance or if the showings were done on demand.  He then asked if we had a security deposit and holding fee procedure.  Was the tenant late to any appointments in the beginning? At first I thought it his questions were unrelated and he had forgot what we were talking about.  Then I realized that his inquiries weren’t unrelated but were all funneling to a major point he was building up to.

After many questions he smiled and said “I know what your problem is.”

He went on to explain that from the moment my staff initially spoke to the prospective tenant we had already begun seceding power and establishing the tone of the tenancy.  My mind was blown.

When we reacted and scheduled a showing for a few hours from the time of the call I was showing them that their time was more valuable than ours. I furthered the problem by asking the leasing agent to stay 10-15 minutes later and her agreeing to show it when they eventually waltzed in. I thought we was being understanding turns out I was being a sucker.

Then the investor said the life-altering sentence “You have been setting the tone for a tenant dominated relationship from your first action.” I spent the next hour of the event going through scenarios and scribbling out notes and procedures on a stack of cocktail napkins. Yes I was that cliched person.  But those many napkins have turned into an amazing procedure and now…this blog series.

The next two blogs will take an in-depth look at some of the ways the tone of tenancy is set in the first 60 days of the relationship. Common landlord mistakes and ways to change it so you are establishing control of the relationship from the beginning.

Corina Eufinger

CEO of Brio Properties

Owner CRC Investments

Owner Brio Properties & CRC Investments

CategoriesLong Term Rentals

A Landlord’s Reputation

Have you ever taken a moment to consider what your reputation is as a landlord? How would your tenant’s describe you? We usually assume our tenant have negative things to say about us.  We usually think they are going to say we’re mean, not accommodating or that we never do anything right. Have you ever considered that they may say you are “easy” or a “pushover”? A reputation as an easy landlord to manipulate can be more detrimental for your business than the standard negative tenant characterizations.

Allowing a tenant to be consistently late on rent or choosing to look the other way when they bring a pet you don’t permit, can set a precedent. You may not have meant to set the precedent because you believed you were being accommodating or life got busy.

You saw the pet at Halloween but next thing you know it’s Christmas. Or (worse yet) maybe you did strategically avoid the confrontation. These things have a sneaky way of snowballing into a larger problem of lapsed rules at the property.  Then next thing you know Emily is also paying her rent a little late and Jason’s bought a dog as well.  Suddenly, your tenants are running the property, you’re not.

We think the nightmare stops with just our tenants talking to each other. But it doesn’t. Jason tells a friend who wants to get a dog he should move to your property and get one after move-in because you don’t enforce it after move-in.  They tell their friends they know a place they can rent and bend the rules without much consequence. Next thing you know, you may not have a vacancy problem but you have other problems. Constantly late rent, broken rules, meaningless lease clauses, etc. This epidemic is just as debilitating as a reputation as a bad landlord.

So where do we draw the line between accommodating and easy? Be polite but firm. Sure you can give a tenant a small break on rent if you chose once, but it is not advised to make an admissible occurrence. “Mariah, I understand you lost your job and I feel awful about that. I can give you till 10th.  But we need a written plan in place with definite steps.”

Enforce the rules as they are written in the lease.  If you don’t allow pets, give the tenant notice about the pet. Let them know there are real consequences for breaking the rules. Even if the complaint might not stand up in court, you need to let tenants know you are watching. Then plan to issue a non-renewal when the opportunity arises.

If you hate confrontation and constantly seek to avoid it, that’s a good indication you might be better served by a property manager.  That way you can continue to have investments that are effectively run.

For the self-managing landlords: if you aren’t minding your investment, then who is?

Corina Eufinger
Owner Brio Properties & CRC Investments

Add to cart